Citation

Discussion Paper Details

Please find the details for DP7118 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Bonus Payments and Fund Managers? Behaviour: Trans-Atlantic Evidence

Author(s): Thomas Gehrig, Torben Lütje and Lukas Menkhoff

Publication Date: January 2009

Keyword(s): fund managers, fundamental information and incentives

Programme Area(s): Financial Economics

Abstract: This questionnaire survey of fund managers in the United States, Germany and Switzerland documents a distinctly positive influence of bonus payments on investment behaviour on both sides of the Atlantic. Higher bonus payments are significantly related to higher working effort but not to risk taking. They also seem to induce fund managers to rely more on fundamental information. Findings within regions are confirmed by Trans-Atlantic evidence as US fund managers receive larger bonuses but also show the effects to a higher degree. The effects documented are stronger for relative than for absolute performance assessment.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=7118

Bibliographic Reference

Gehrig, T, Lütje, T and Menkhoff, L. 2009. 'Bonus Payments and Fund Managers? Behaviour: Trans-Atlantic Evidence'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=7118